Utility and Resident Management Solutions

Heating and cooling accounts for approximately 56 percent of the energy use in a typical U.S. building, making HVAC the largest energy expense hitting your bottom line. HVAC systems that are not regularly maintained quickly turn into energy gluts that can decimate your utility budget. Systems not properly cleaned and repaired can use up to 25 percent more energy just to function.

Completing preventative maintenance on HVAC systems is well beyond cleaning the coils and changing filters. There are many sources for excellent checklists, including the EPA and the manufacturers of the systems you have in place.

Below are some essential steps that can be done in house to assess the condition of the system, as well as other conservation opportunities for little or no expense. The steps can be used on central or individual HVAC systems:

Use manufacturer data sheets to start your check. If you no longer have the hard copies, look online. These sheets will show optimum performance guidelines and steps to keep the system in excellent working order.

Watch that thermostat or time clock! Scrutinize the settings and timing to be sure someone isn’t tampering with them to increase unnecessary energy use. Is your system set to reduce energy usage when occupancy is low such as evening hours in offices, business centers and common areas?

Is anything blocking air intake/exhaust returns or anything being stored around the system that could impede proper air flow to the system?

Do you have proper insulating blinds and shades on windows to reduce heat loss in the evenings in offices and common areas? Are they in good repair and being closed nightly?

Outlets are a source for air loss. Use safety plugs on all unused outlets to prevent heat loss.

Clean all dirt on working and movable components. This includes coils, fan motors, ducts, grilles, drain pans that may be blocked, dampers, heat exchangers and the general exterior of the system as well.

Open access doors and check for loose wiring, turning components, fire dampers, valves and replace as needed. Run the system through a heating cycle and check to see that automatic dampers and valves are opening properly and closing tightly.

Check to see that the fan is rotating in the proper direction and the speed equals the manufacturer’s recommendations.

Install timing devices to reduce heating during low occupancy hours. Close air ducts in little or unused areas not subject to freezing pipes.

Once you’ve completed your preventative maintenance, make sure you set up a log to keep track of your work and the system’s operating standards. Next, compare your energy use (not cost as rates fluctuate) to the same month in the previous year taking into account heating degree day variables. Your goal is to mirror the manufacturer’s use metrics for your particular system and maintain or reduce energy usage year over year or identify when the system needs to be repaired or updated based on the energy results.

By taking the time to thoroughly check your HVAC system, you will not only save energy but late night emergency calls from disgruntled residents and uncomfortable explanations to owners about why their building isn’t being maintained. Preventative HVAC is time and energy well spent!

ADDISON, TX – November 2, 2017 – Minol USA and Zenner USA, leaders in the utility metering and utility billing industries, made a $20,000 donation to the One America Appeal fund to provide much needed relief to those impacted by hurricanes, Harvey, Irma and Maria.

“Our sincere thanks to Minol USA and Zenner USA for their kind donation to the One America Appeal. This has been a truly devastating hurricane season, and even though these catastrophic storms are no longer dominating news coverage there are too many Americans who need our help. Thanks to Minol USA, Zenner USA and the other 80,000-plus donors to this cause, we are trying to help where it is needed most,“ said Jim McGrath, spokesperson for One America Appeal.

Launched by all five living former American presidents, One America Appeal, is one of the few organizations that ensures 100 percent of every dollar donated goes to hurricane recovery. Minol USA and Zenner USA’s donation will be divided amongst the Hurricane Harvey Relief Fund, Rebuild Texas Fund, Florida Disaster Fund and Unidos Por Puerto Rico.

“Many of Minol’s customers are directly impacted by these devastating storms. We hope this donation will assist them as they rebuild structures and lives,” said Wilmar Basson, President of Minol USA.

“A company is defined by its professional successes but more importantly by its compassion. The Zenner team is honored to help in the recovery efforts,” said Rich Sanders, President of Zenner USA.

Founded in 1952, Minol pioneered the utility submetering industry. From submetering and billing to energy management and conservation, Minol provides a suite of innovative solutions that maximize revenue and enhance NOI. For additional information, please visit www.minolusa.com

About Zenner USA

Zenner USA, a division of the international Minol-Zenner Group, is a manufacturer and distributor of high-quality water meters and heat meters for the measuring of consumption. We bring more than 100 years of experience in measuring technologies and 50 years in billing to each client we serve. For more information, please visit www.zennerusa.com

It’s no surprise that multifamily properties often have high water consumption. Resident habits, pools, laundry rooms and sprinkler systems all contribute to increased usage and as a result – costly utility bills.

Common reasons for high water usage:

Residents often aren’t aware of leaks or don’t report them when discovered – 20% of all toilets leak at any given time.

Water conservation tips aren’t provided to residents (many residents see no relationship between the amount of water they use and their cost to live in the property).

Older fixtures.

Poor or aging plumbing.

Managing a property’s water expense varies based on the individual owner as well as city and state regulations. An owner may choose to invest in a submetering system that measures each unit’s actual consumption. If a submetering system is not an option or outside of the owner’s budget, an allocation method may be used to calculate usage and distribute charges among the residents. For some properties, such as affordable housing, residents are not billed for their water usage which can pose a heavy burden on already taxed budgets. An effective water conservation program not only reduces consumption but has the potential to lower monthly water bills by up to 40%.

How an Affordable Housing Community Saved $500,000

An affordable housing client faced an increase in residents along with a decrease in funding and grant support. The management team decided it was time to explore solutions that would conserve both resources and dollars. The solution: Minol’s Water Conservation Program.

More than Shower Heads and Flappers

Minol developed the Water Conservation Program to minimize excessive water consumption within communities. This unique and innovative program utilizes a combination of high-quality components and a proven methodology developed more than 30 years ago.

The evaluation process to identify eligible properties is complimentary and begins with a Minol team member analyzing specific property survey information and 12 months of water usage. As the team identifies properties that need help, Minol rebuilds property components at its own expense through its Pay-Out-of-Savings Program. Minol’s investment is recovered through the savings generated, which is typically within 12 months. “The Pay-Out-of-Savings component was a key differentiator from other water conservation programs we had researched. We saw savings within months of implementing the program,” said a client representative.

Program Implementation and Results

The client provided property and water usage information for 162 properties with 15,007 units to Minol for evaluation. The Minol team identified 31 properties with 3,418 units that qualified for the program. The client chose to implement their water conservation plan in four phases. All toilets were retrofitted with highly-effective toilet flappers, while low-flow showerheads and aerators were also installed.

The team is very pleased with the results Minol’s Water Conservation program has yielded for their communities.

Will Your Property Qualify for Pay Out of Savings?

The criteria below are typical qualifiers. A simple survey and analysis can determine if your property qualifies.

Rubber stamping electric bills is a secret no one wants to talk about; not you, not the company you work for and certainly not the utility company who bills you!

Electric bills can seem mind boggling when your area of expertise is managing buildings versus kWh and demand fees. You need answers now and utility companies are usually as illuminating as a blown generator. Understanding the anatomy of a bill sheds visibility on why your expenses are in or out of line with your budget.

First, there are four basic types of charges:

A Service Charge is a catch-all fee that’s charged on every bill for operational costs such as printing, overhead, customer service and maintenance.

The Energy Charge is a standard measure of a unit or kilowatt hour (kWh). The kWh = the measure of electricity you use x the length of time you use it.

A Power/Fuel Cost Adjustment is a way for utility companies to charge back operational expenses that fall out of budget. Example, if the expense of running a power plant is more than budgeted, your bill will be adjusted upwards by a proportional share to cover those expenses.

Demand Charges can be a large part of your electrical bill. A demand charge is based on when you use your energy and whether you’re using it during a ‘peak’ demand time. If you have a bill related to a piece of equipment that requires significant energy during specific periods of ‘peak’ time, this could adversely impact your bill. Whereas, if your equipment uses relatively equal energy all the time, your bill would be less impacted. Peak demand use = big bills.

The last critical piece to understand is the rate structure and whether it’s correct or the best option available. There are seasonal rates, tiered rates, time of use rates, and now “real time” rates on smart meters. In addition, there are commercial rates and residential rates. By finding your rate type on your bill and reading the utility provider’s rate structure you can better understand what you’re paying and why:

A seasonal rate goes up or down based on the time of year. For example: A utility may charge a higher electrical rate in summer versus winter.

Tiered rates generally charge customers more if they use more and less if they use less.

A flat rate is simple; it won’t fluctuate based on usage and time. It always stays the same.

Time of use does fluctuate depending on when you use it. For example, a utility provider may charge more for residential clients in the mornings and evenings when most people are home and using the most electricity. Or, a commercial client may be charged a higher rate from 9 AM to 5 PM when office equipment is at its peak use.

“Real time” rates on smart meters are based on the actual time you use the electricity against the actual cost a utility spends at that same time to generate the electricity.

Armed with basic knowledge you can better dissect your bill. You may even find that you qualify for a lesser rate, such as a commercial or residential rate based on your usage patterns. Maybe you can adjust a high energy consuming piece of equipment to run at a cheaper time without impacting performance? Aim a strong light at your next big electric bill and see if there’s an opportunity to take power over your utility expenses.

The rapid evolution of technological advances in energy and utility metering and billing platforms is constantly surpassing the current regulatory arena causing most companies to turn a blind eye. From new software-based HVAC systems to touchscreen metering devices, in-house legal and compliance departments are encountering difficulties in advising their clients appropriately considering legislation is light years behind.

In looking at the Texas market, many companies are selling smarter technology to multifamily building owners at low costs with enhanced energy efficiency, guaranteed savings and cost-recovery for utility usage. Simultaneously, the Substantive Rules governing electric, water, and HVAC metering of multifamily properties in Texas remain steadfast with requirements to use only watt-hour or volumetric sub-meters or choose to allocate energy and utility charges by subpar standards, such as by square footage or number of occupants.1 Such outdated regulations limit owners from using smarter technology that may provide a more accurate measurement of energy and utility usage.

That being said, every new technology doesn’t necessarily warrant new legislation; however, outdated legislation can create havoc for regulatory and compliance teams. For example, attempting to accurately determine whether use of energy efficient systems that provide Green Building Certifications is within compliance may set up companies for potential risks against future regulatory violations and litigation.

Allocation: Is it Really Fair?

The multifamily industry needs to remain aware of the currently regulatory landscape and its limits in allowing property owners and consumers to potentially benefit from smarter technology.

Specifically, in Texas, tenants may be billed for water and electric usage based solely on the square footage and/or occupancy of their apartment unit. This type of current legislation may cause tenants to pay for energy usage not used solely by the tenant.

You may have one tenant occupying an 800-square foot apartment unit and three
tenants occupying a similar 800-square foot apartment unit while both units are billed for the same amount of energy usage. By adding smarter technology solutions as an option under current regulations, property owners may be able to more accurately measure usage by applying additional factors, such as thermostat set points, valve position and timing, as well as individual unit energy load (demand) for a more accurate assessment of energy usage.

The scenario above is common. In Texas alone, the Public Utility Commission of Texas lists 6,970 submetered and allocated properties. Of that 6,970, only 24% are submetered, with the remaining 75% allocated.

The following provides a high-level overview of some compliance issues with the use of smarter technology for measurement of energy and utility consumption:

Key Focal Points with Technology and the Resulting Issues

Why Regulatory Change is Critical

The primary reason for regulatory change is to meet the demands of property owners who are seeking more energy efficient systems to accurately assess energy charges to their residents. In turn, consumers are seeking more accurate billing methods for energy consumption. Property owners benefit from smarter technology due to the design/installation flexibility, lower installation and maintenance expense, long-term energy cost savings and green building certifications. In addition, consumers also benefit from smarter technology with more accurate measurement devices/software, energy savings due to efficiency, and lower costs allocated as a result of an owner’s savings realized overall.

So where lies the disconnect between regulatory agencies and the industry? Due to the literal meaning of the regulations and lack of regulatory action in the past years, property owners are limited in their use of smarter technology since such use will prevent recovery of energy and utility charges from their residents. In addition, property owners are entrusting the sellers of the smarter technology to provide the due diligence that will allow implementation and use of the technology in this current regulatory arena. Unfortunately; however, property owners are stuck with an enormous project that is of no use after proper review of regulations. Meanwhile, residents continue to be billed charges based on the most inaccurate methodologies of square footage and occupancy or outdated metering systems.

To avoid these issues and take advantage of the smarter technology, consider the following steps to avoid future compliance issues:

While the current regulatory landscape does not incentivize owners to incorporate smarter technology and more energy efficient products within their properties, there are a few methods available that may allow owners to take advantage of energy savings. Until legislation catches up, owners may have to take the extra, but necessary, steps to ensuring proper implementation of these smarter systems for measurement of energy and utility consumption.

Kimberly has a wealth of experience in regulatory review and compliance. She led the development of Minol’s internal regulatory database that covers all fifty states and contains third-party utility billing compliance information from the utility provider requirements through state regulations. She has facilitated seminars for multifamily property owners in Texas and Massachusetts discussing utility billing compliance. She is a member of the Utility Management and Conservation Association.

She is a graduate of Texas Wesleyan School of Law (currently Texas A&M University School of Law) and is a licensed attorney in the state of Texas.

THE INFORMATION CONTAINED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT SHOULD NOT BE CONSTRUED AS LEGAL ADVICE NOR RELIED ON AS LEGAL AUTHORITY. PLEASE CONSULT LEGAL COUNSEL TO DETERMINE SUITABILITY FOR YOUR SPECIFIC PROPERTY.

If you own or manage a building with master metered electricity that is not submetered, you are likely getting zapped!

The average monthly cost for an apartment’s electricity usage is approximately $1,419 per year or about $118 per month. That equates to, not including common area expenses, a $23,600 electric bill just on interior usage for a 200 unit community.

If you haven’t considered submetering, now may be a good time to evaluate your options. Submetered apartments save between 15-25% on electricity versus non-submetered apartments. In addition to promoting conservation, many owners see a return on investment in less than 18 months.

Master Metered ElectricityA multifamily building with one master meter installed by the provider, or multiple in the case of garden style buildings, captures both common and interior usage for that particular building’s usage. In this scenario, the owner pays the entire bill directly to the provider.

Submetered ElectricitySubmetering measures each individual apartment’s usage. The submeters are installed off the main line in a position that will capture all usage for lighting, appliances and HVAC where applicable (may require separate metering). The resident’s specific usage is billed back and allows for a fair and equitable solution to recoup interior electric expenses.

Is Submetering the Right Choice for You?The building’s electrical configuration will determine what type of submetering solution you will need so it is critical to know what to look for before investing.

Below are key items to evaluate:

Locate the distribution panel. Is it in a common area closet, basement, outside or in each apartment?

If the distribution panel is located in a common area closet, does the distribution panel have a circuit breaker for each unit so that each can be turned off by itself at the panel? For example: 12 units per floor or 12 units per building.

If each unit can be turned off individually at the panel, it makes sense and is less disruptive and expensive, to submeter at the panel. The submeters are installed either in the distribution panel itself or right next to it.

If you can’t turn off one unit at a time, the submeter must go inside the unit next to the distribution panel, usually in or near the kitchen. A flush mount meter is recommended for aesthetics.

If the apartment distribution panel is in a closet, a protruding submeter can be used.

An outdoor distribution panel follows Steps 1 and 2 but requires a different, weather grade submetering solution. For example: An outside NEMA enclosure to house the meters.

Determine the Amp Rating on the main distribution panel: 20, 50, 100, 150, 200 or other.

Are the apartments labeled on the distribution panel? If not, this will need to be audited and identified prior to installation.

Determine the phasing for the distribution panel: Single-phase, three-phase, Delta phase or other.

How many wires feed the distribution panel? 2, 3, 4 or other?

The number and location of the building(s) will determine how the electronics needed to read the meters will be installed. A site map is important. Certain topography (mountains and hills) requires careful placement of electronics so reads can be collected. Basements may require more signal strength.

Determine where the data collector (a small computer that collects the reads) will go. An interior, dry and sometimes climate controlled space is required.

After conducting the above analysis, you are now ready to choose a submetering solution. A Request for Proposal (RFP) may be the easiest way to gather comparable proposals. An RFP allows vendors to propose solutions based on your requirements so you can compare hardware specifics, pricing and labor. Remember that a licensed electrician should be included in the labor pricing and a drywall/painter as well if installing within the apartments.

Solutions by Electric Configuration

Distribution panel: The distribution panel is in a common area or basement and each apartment can be turned off at the panel. Mini meters are the best and least expensive solution. A mini meter is small, designed for residential application and generally works for 100A, 200A, and 400A electric submeters. They are perfect for metering electric consumption or production for nearly any 120V 2-wire or 120/240V 3-wire application.

Individual unit turn off: The electric for an apartment can only be turned off individually within the unit – A mini meter will still likely work plus an indoor flush mount enclosure. Additional expenses for drywall and paint work will need to be considered.

Outdoor application: An outdoor rated MMU (Multiple Meter Unit) is typically the best solution. An MMU allows for multiple outdoor submeters to be installed at the exterior distribution panel in a weather grade enclosure. Another option is to use socket style meters. There are pros and cons with these in that they rely heavily on available building space and if meter sockets are already available or would need to be installed.

Be prepared to bring in reliable electricians to help you select the highest quality and most cost effective submetering solution. They will also determine the best configuration for your building type. The payoff is well worth the effort – greatly increasing revenue and property value while also encouraging conservation.

About the Author
Kate joined the Minol USA team in August of 2009. She currently oversees the Energy Management Program with a special emphasis on utility provider bill payment, cost avoidance and green initiatives.

Prior to joining Minol USA, she was employed by REIT AvalonBay Communities, Inc. for more than 20 years. While with AvalonBay, Kate successfully lobbied for the passing of the submetering law in Massachusetts in 2005.

What if on Day One of the earth moving on your new community you didn’t have to touch the utility aspect of the site? And, if you wanted to understand what accounts have been created you only need to go to one place to see everything – from what utilities are set up to your current spend? And, what if you could outsource doing everything from powering up the accounts for the trailer right down to installing the last meter needed at the lowest, possible rate available?

Introducing an Energy Manager to the construction team mix in the planning stages will help establish a strong utility expense management structures that carries throughout the life of the investment.

Finding the right person requires a basic understanding of the scope of work and practical benefits. They must have the knowledge to educate you on technology options, as well as the fine details associated with this complex service.

Anyone involved with new construction has experienced the hazards, frustrations, and hair pulling while trying to understand utility bills.

Benefits of Employing an Energy Manager from Day One:

A controlled set up of utility accounts at the right time with the correct, lowest rate available is obviously the best case scenario. Let’s face it, construction companies have the accounts set up at the last minute, rarely worrying about whether the rate is correct. This is a temporary gig for them. You will manage or own the asset long term. An Energy Manager can handle set up based on the construction schedule, on time, at the right rate. No frantic phone calls and unnecessary delays to the project. And, if an issue arises, the Energy Manager sits on the phone with the utility company – not you.

The centralization and accessibility of data in an energy management software system is imperative. Imagine no more digging through piles of paper bills trying to find the one number you need. Also, with data being captured correctly and in detail, the ease of accessing it for monthly variance analysis and annual budgets is a breeze. Reports on usage, rates, expenses and exceptions is possible. And, so is making data-driven decisions.

Streamlining of A/P processes and the alleviation of work for the accounting and construction, teams, i.e., the rubber stamping of bills versus skilled, audit reviews before payment. For example, the initial paperwork to create accounts, important continuous service agreements and the creation of a standardized process with one point of contact for construction and management can all be handled by an experienced energy manager.

A central point of contact smooths the transition from construction to management with business rules dictating the allocation of bills to be paid based on certificate of occupancy acceptance:

Once operational, the Energy Manager continues to add value by eliminating work load for management and expertly handling all your utility needs:

Continuous bill auditing using defined metrics. Utility providers never stop making mistakes and rate errors or leaks left unnoticed will cost you big if undetected. Issue resolution on behalf of management is also a critical component. Early detection of problems, such as leaks, and quick resolution are vital to quality utility bill management.

Negotiation of procurement contracts is more than just calling brokers and looking for the lowest price. There are dangerous pitfalls of low kWh/high extra fees. A seasoned Energy Manager is crucial to avoiding costly mistakes. Important steps will include reviewing historical usage patterns for your portfolio, aggregating load to gain maximum deal, determining hedging options, scrutinizing hidden fees, finding reputable brokers to contact, manage and negotiate the proposal process, and ultimately present the best options for your consideration. Once a provider is chosen, the Energy Manager maintains and manages the contracts going forward.

Failure to connect management and billing. This shouldn’t be a manual process completed on site. Management teams are busy and will miss opportunities to capture all failures to connect problems. An Energy Manager uses a software program designed to capture all failures to connect based on rent roll data versus bill service periods. These would then become exceptions and billed out with an additional penalty fee where allowable by law.

If the data is centralized, a budget should be created at an account level based on historical usage patterns, current rate and researched increases triggered to occur in the month forward when actually taking place. Further, anomalies from the previous year, such as leaks, credits or true ups should be scrubbed so the next year’s budget isn’t skewed. This is not the common practice of last year’s expense plus 3-5% increases. It takes a seasoned energy management veteran’s depth of knowledge in utilities to create a realistic budget.

In conclusion, efficient and effective utility bill management is a reality. An Energy Manager will make sure your management associates never open another utility bill envelope. They will save you time and money and likely make you even more money. Paying a utility bill can cost you upwards of $15 per bill to process. Considering that utilities comprises 16% of your expenses, finding a good energy management program should be a top initiative and not an afterthought.